Why do you need to have this certificate?
You require this certificate to be able to sell and distribute mutual funds in India.
Which institute/body conducts the test?
The mutual fund test is conducted by National Institute of Securities Markets (NISM). NISM has been established by SEBI.
How can you register for this test?
You can register for this test through NSE, BSE or MCX-SX. Their websites require you to create an account for registration. You would have to upload your photograph to register.
What is the study material all about?
The study material basically seeks to create a common minimum knowledge about mutual funds. The institute sends you a 365 page book once you register for the test. Soft copy of the book can be downloaded from the institute’s website. The language of the book is simple and easy to understand.
The website URL is www.nism.ac.in
What should you look out for?
There is negative marking in the exam. For every wrong answer your score will be deducted by 0.25 marks.
Passing Certificate is issued only to those who have furnished/updated their Income Tax Permanent Account Number (PAN) in their registration details.
What do you need to do to clear the test?
Read through the NISM book thoroughly a few times depending on your knowledge about mutual funds. Most people familiar with mutual funds or those with a commerce/finance background would need a week’s preparation at the maximum to clear the test.
How would you benefit if you have this certificate?
You can sell and distribute mutual funds only if you have this certificate. This certificate ensures that you have adequate knowledge about the product when dealing with clients.
Where are the tests conducted?
The tests are conducted by NSE, BSE or MCX-SX for NISM. NSE conducts these at six locations on a regular basis. These locations are Mumbai, Delhi, Kolkata, Chennai, Hyderabad and Ahmedabad. It can conduct tests at other locations if there is enough demand. In Mumbai the test is conducted at Fort.